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Required information The following information applies to the questions displayed below) Hudson Co. reports the contribution margin income statement for 2019 HUDSON CO. Contribution Margin

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Required information The following information applies to the questions displayed below) Hudson Co. reports the contribution margin income statement for 2019 HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,200 units at $225 each) Variable conte (10,200 units at $180 each) Contribution margin Fixed coste Pretax income $2,295,000 1,836.000 459,000 360,000 99,000 The marketing manager believes that increasing advertising costs by $87,000 in 2020 will increase the company's sales volume to 11,600 units. Prepare a forecasted contribution margin income statement for 2020 assuming the company incurs the additional advertising costs HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Sales Variable costs Contribution margin Fixed costs Income (pretax Loss $ Should the company incur the additional advertising costs? 0 0

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